john tray nor will you take this? record close for s&p 500. [closing bell rings] for a record, dow transports closing at record high as well. we hope you have a lovely holiday weekend. that will do it for the claman countdown. melissa: the dow surging into the close a new record high. following jobs report. s&p celebrating new record close. i love that. david: we love that. what a nice friday gift to all of us. david asman, melissa francis and i welcome to you after the bell. more on big market movers. here is what else we have for you. another very busy hour. president trump getting ready right now to leave the beltway for the deep south. the commander-in-chief is about to head to pensacola, florida for a campaign-style rally. that is happening to night. the event is located 25 miles from the alabama border. that is significant. that is where the senate race is between roy moore and doug jones

as it he had hads into the fine -- heads into the final weekend. southern california described as a war zone. multiple wildfires roaring through the state. destructive flames, forcing evacuation of 230,000 people, reducing hundreds of homes to ashes and torching 80,000-acres of prime land. how emergency crews battle blazes as conditions are worsening all over the state. melissa: back to the markets. the dow ending the day with its 65th record close, 65 records. david: wow. melissa: nicole petallides is on the floor of the new york stock exchange. nicole, what are they talking about down there, as if i doesn't know, another record? >> yeah. it is nice to be able to say it, right? 65, 66, 70. truth of the matter people still feel optimistic. we have better than expected jobs report today of 2 28,000 jobs added.

also seeing wage growth. that gave a boost to the markets. hence we have record close for dow and s&p 500. one trader said it's a runaway train. they're feeling pretty great. we'll watch for the fed next week. we had a lot of winners for the week. dow and s&p are higher to the week. the nasdaq did not squeeze it out. everyone talking about bitcoin. we talked about what a crazy thing bitcoin is. obviously the cryptocurrency but the big deal on sunday, it is really going to the cboe, global markets exchange, futures contracts but they have heavy margins on it and requirements for quote -- collateral. if you're dabbling in bitcoin. it went up to 15,000, 19,000, 16,000. it dropped almost 20% in one trading day. it is for very volatile. not for the faint of heart. we'll follow that story. a lot of names on the dow that hit all-time highs.

boeing, travelers, nike, caterpillar, just to name a few. it was a great week on wall street. melissa: it was a great week. time to party. will you see at the z-100 jing bell ball? >> i would love to go. melissa: i'm totally going. david? david: strong jobs data, fueling market gains. labor market better than expected jobs report showing signs of a strengthening economy, u.s. adding 22thousand new jobs in november. unemployment rate at 17-year low. we have paul alvarez and jack hough, "barron's" senior managing director, michelle gerard, and i have to admit, a good friend. michelle, two million jobs have been created since donald trump was elected yet somebody else wants to take the credit for it. play the sound bite and get your reaction. play the bite. >> as we took these actions we

saw the u.s. economy grow consist 10ly. we saw the longest streak of job creation in american history by far, a streak that still continues by the way. thanks, obama. [applause] david: thanks, obama, michelle. does he deserve any credit? >> the economy no question was doing, in the sense of with the performance coming into 2017, before the election i was concerned, businesses were pulling back. they cut back on business investment. it looked like the employment situation was also going to be slowing, in the wake of the elections because businesses all of sudden became much more optimistic about the outlook they began spending on equipment. the pace of hiring picked up. we came into the year thinking you would be lucky to average 150,000 a month.

we're close to averaging 170,000 a month. that is optimism businesses felt under president trump. david: paul, what do you think? >> i think we've seen more same of jobs growth, more of the same, unemployment rate, more of the same of labor participation rate, and to me the story is wage growth or certainly lack thereof. no bitcoin experience on wage growth. as we approach full unemployment you will see pressure put on wage growth which could lead to additional inflation risk. david: well, jack, that is the point. this is a great selling point for president on tax cuts, look as good as things have been with the market and job growth and so forth, we still haven't had wage increase with unemployment so low, and companies expand to get tax break and spend more money for people. >> tons of excess capital and all the chance to expand if they want to. i want to give the president credit here. we have 86 straight months of job creation in america.

i want to give trump credit for 11 of those. in fairness, david, we're still operating under a budget and tax code that we had under obama. we really have to wait until next year. david: i know. >> give the president credit for 11 months. david: change the tax code. melissa: speaking of which, talk about that, averting a government shutdown. house republicans passing a short term spending plan to fund the government for two weeks, shifting focus back where it belongs to tax reform. david: yes. melissa: blake burman live at the white house with the latest. reporter: hi, there, melissa. the president earlier today signed the government funding bill, which punts the whole issue back to would weeks to december 22nd. politically allows republicans to do, focus all next week their efforts on tax reform. to that end, i am told that president trump is likely to make his closing argument on taxes at some point during the neck week. a lot of work remains up on capitol hill among republican

negotiators to mesh together the house and senate bills. among key issues that still remain outstanding for example, how to pass tax throughs, whether the amt will stay and go. how to alleviate some concerns still involved with the state and local tax deduction that will be potentially no more. to that end earlier today, gary cohn told stuart varney the conference committee doing work and have likely first and only public hearing next week is taking tweaks potentially on "salt." >> the conference committee in the house and senate is working on delivering fixes for the salt states. they have, they have the ability, if you drop the top rate, the president will be supportive of that. reporter: dave and melissa, when you look at schedule going forward, here is how it could play out, some indications that we're getting. the conference committee next week. potentially a bill getting to the president the following

monday or tuesday, which could be december 18th or december 19th i stress could. one senior administration official say they feel they are very well-positioned to stick to the timeline they are pushing several months, having tax reform legislation to the president by christmas. back to you. melissa: they better. they better. blake, thank you so much. go back to paul, jack and michelle. paul, i want to start with you, because your expertise is setting up companies to benefit from tax policy and tax changes, quantifying that. >> yep. melissa: what part of this are you most focused on? what part of the deal needs to be in there? what is the most important thing? >> there is lot of moving parts obviously to tax reform. to me the most important part is the risk of additional stimulus on top of what we just talked about on the jobs report, with increased inflationary pressure. listen if you cut corporate tax rates, presumably that is going to pure job creation. more job creation in already

full employment environment puts increased pressure on wages. therefore it causes increased inflationary pressure which could cause the fed to react in more than cautious manner going forward. we have a boom and bust cycle. melissa: you're, wait, arguing against tax cuts for corporations? >> no, i'm arguing about the risk. that is the one of most important things. melissa: what is most important things in the tax code that need there to be make the change and in order to see growth and are you buying inflationary pressure people are selling? >> no. i think importantly, on the inflation front, really important to understand this kind of stimulus, which increases economy's productive capabilities is not inflationary. it may, and should, if productivity rises mean that companies are willing to pay more for workers. wages can go up but because these companies are able to get more out of their workers, it doesn't necessarily mean there

is margin compression that they have to raise prices. i think jay powell, the new fed chair, i would suspect other new members of federal reserve board that the president will appoint are going to have this same view, that the fed doesn't necessarily have to see increased inflation risk as a result of these tax cuts. melissa: i mean it sounds like good organic growth. wages are the things that have been lagging. paul, that is what you said in the last round. jack what is your take? >> if you really want to get stimulus out of this, stop stuffing money into trump's pockets in both hands, return more to the middle class. melissa: what? what? >> let me give you a stock tip, for the past month there has been rotation into value stocks. we haven't seen that in years. value stocks are more domestic in their operations. they have higher tax rates. they're bigger beneficiaries from the corporate tax breaks. that is where investors should be looking. melissa: how is trump stuffing money into his own pockets?

where do you see that? >> the last return, granted it was lot of years ago, hasn't shown in some sometime, 85% of money he paid came from amt, alternative minimum tax. they make that go away. trump is giving christmas present to himself on this one. melissa: do you want to respond to that one, michelle? is that how you see the tax cut. >> hey, i don't love aspects of the individual tax plan. what i am, when you asked earlier what is the most important thing, getting the corporate tax cut, getting the rate for pass-throughs down, and accelerated depreciation is real kicker here. i think that which spurs investment is really going to be critical for the growth impact in 2018. melissa: i think every rich person in new york will pay more tax result of this tax code. i don't know. paul, what do you think, last word on that? >> no i agree. >> all the rich people, i mean, getting hosed, getting hosed. guys, thank you. david: thank you. tax foundation, tax foundation found that 85% of americans are

getting a tax break as a result of the senate plan and the people who aren't are the rich people. melissa: yeah. there you go. david: open for negotiations? just one day after saying war with u.s. is inevitable, north korea signaling it might be ready to come to the table for direct talks with the u.s. what is going on? the latest on the nuclear standoff. melissa: plus day of rage protests turning deadly. violence erupts in the west bank after president trump's decision to recognize jerusalem as israel's capital. what we know now as an emergency meetings is being held at the u.n. david: president trump is going to head to florida later this hour. what to expect from the president's make america great again rally tonight. a live report from pensacola you don't wan to miss coming next. ♪ you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week,

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david: president trump leaving d.c. in a few moments to head to pensacola, florida, where he has a large rally. hill very vaughn in pensacola. a few days ago you were covering fires in california but now you're in pensacola. what do you expect tonight? reporter: cold and windy here not what you expect in florida. hundreds of people lined up, and presidents trump expected here in hours. the big question, is roy moore showing up tonight. but his campaign said he is not. they encouraged their supporters to come here and listen to president trump speak. there are handful of alabama supporters -- voters and roy moore supporters. look at this line, and it is cold. people are lined up. the big other thing to note

here, pensacola, florida, and mobile, alabama, the third biggest city in alabama, they share a media market. so president trump's appearance here is almost like going to the stump in mobile because local tv is going wall-to-wall with his remarks tonight. campaigning here instead, let's trump reach out to grassroots voters in alabama and still stay arm's length away from candidate roy moore. the "real clear politics" average has moore up a little over two points. any rester to rally the loyal alabama base here, could help boost turnout on election day which is expected to be just as cold and snowy. now roy moore's opponent doug jones has been the subject of some attacks from trump on twitter. trump called him a pelosi-schumer puppet, saying he will block his agenda. that is key because 62% of alabamaians voted for that agenda in 2016 and trump is saying he need that republican senate seat to get his agenda

through. so, a lot of people from all over the south here, today, including neighboring state of alabama. david? david: it is going to be a squeaker on tuesday. but we'll rev up for the rally tonight. thank you very much, hillary vaughn, appreciate it. melissa: here ahead of tonight's big rally, bree peyton from the federalist. what do you make of all this? >> i think we can expect to see a bump in the polls in favor of roy moore as a result of donald trump's rally. as hillary said this is pensacola shares a heed -- media market with the largest media market in alabama. his pushing for roy moore there definitely helps. we can expect to see that coming out today. melissa: do you think roy moore will come on the stage while doing this? so unlike president trump not to go all-in on something. he is already accepted the political risk of associating himself with someone who is carrying so much baggage. there is kind of no point not

going that last step? >> yeah i guess i don't really see the political risk at this point. he is already endorsed him on twitter and said repeatedly people should vote for him. at this point the senate is very close, there is a very tight margin. so this seat is politically important, right? melissa: yeah. >> what is honestly the most annoying thing out of this whole entire news story and the whole story watch democrats act like they have the moral high ground in this situation because they expelled a couple of creepy democratic congressman and senators from districted and states totally safe. just looking at them act like, oh we got rid of a couple guys that were creepy. we're the moral high ground in this scenario is really i think tone deaf. melissa: let me take the flip side of that argument for the sake of being the devil's advocate. when you have roy moore, a lot of his positions are very extreme on all kind of things, whether it is same-sex marriage or, i mean, the entire agenda,

there is a lot there. so it, it is in addition to these charges of late, do republicans risk this becomes the face of the republican party and turns off younger conservatives? >> yeah. i mean i don't think so. i mean, you know, personally i'm someone who supports less government. i wouldn't vote for roy moore personally. melissa: right. >> but i do definitely think that republicans are just sick of sending republicans to washington and them not delivering on their promises. i think at this point, listen we need that seat. so that way the republicans deliver on all the promises that they have a hard time keeping up with and delivering. so i don't really see this as something that would maybe turn off younger conservatives. i think younger conservatives are result-oriented and result-minded. so i think at this point it is like voting of lesser or two evils. you either get the seat or you

don't, as sad as that is. melissa: it is math. a lot of people looked at presidential that way who didn't necessarily like either candidate or think either candidate was someone they would want to marry or, was somebody they would feel comfortable with in their family necessarily or whatever, but they voted based on their issues and where they were on the issues. they were like this person is more likely to advocate for what i want, even if maybe they didn't conduct the personal life the way i would have in both cases? >> yeah, you're exactly right. at this point, it is a choice between roy moore who accused of really doing terrible things and has a track record of trying to expand the role of government and not being the most conservative person on the planet and saying a lot of crazy things. melissa: right. >> or doug jones, who wants to get rid of all restrictions on abortion and repeal the hyde amendment, right? melissa: yeah. >> so if you're evangelical voter looking between these two

coast -- choices and it's a tough choice. at end of the day it comes down to the seat and holding the majority in the senate and i think a lot of people are looking at that and looking at pure numbers basis alone. i think donald trump's presence certainly does help. he is pointing out that fact as well, right? look, we need the seat. we barely got the tax plan passed. you lose the seat, other things we promised, tried to deliver may or may not happen. melissa: you summarized it perfectly. we'll leave it there, bre. >> thank you. david: state of emergency. massive wildfires still raging through southern california, forcing thousands literally to run for their lifts. we'll take you live to california coming up. also harrassment allegations hitting the hill. will this impact the president's agenda? how? the very latest from our own chad pergram on capitol hill next. ♪ a real babysitter instead of your brother. hey. oh. that's my robe.

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melissa: three congressman out in one week following

resignations from representatives john conyers, al franken, and trent franks of arizona now stepping down, after admitting to discussing surrogates with female staffers. i still don't understand that one. the republican congressman just releasing the following statement. last night my wife was admitted to the hospital in washington, d.c., due to an ongoing ailment. after discussing options with my family, we came to the conclusion, that the best thing for our family now, would be for me to tender my previous resignation effective today. an ethics investigation is now expanding into representative blake farenthold. the texas republican is accused of paying a sexual harrassment settlement using taxpayer money. although a lot of them are accused that. david: millions of dollars in that program. here now is chad pergram, fox news capital hole senior producer. chad what a week. talk about melodrama inset of

the beltway. you have congressman announcing they're resigning. there must be other news about to drop. have you heard anything in the scuttlebutt about that? >> everybody in the capitol is on tenterhooks because they just don't know. you can man there are rumors and innuendo swirling all over the capitol. this is pretty busy news period on on capitol hill. they just passed spending bill. that will keep the government open two weeks. those are not the primary stories in washington. david: chad, face it, i know you are a nerdy guy like i am. we love the numbers and number crunching, but sex sells, as salacious as a lot of details are, that is what everybody, that is what the rumor mill talks about. that is what keeps it going. >> right. it might also affect the vote count here. david: how so? >> look at interpret franks. he resigned today. when they passed that bill in

the house of representatives yesterday to keep the government open they did it with enough freight on the republican side of the aisle. they didn't need to go to democrats. that is usually case on those types of bills. they did it with a margin of two. that would drop the margin to one. that shows you how different it is. we don't know who will be in the senate next week, roy moore or doug jones. that could affect things when it comes to vote count on tax reform. david: absolutely. >> everything is right on the margin. so critical to follow the story. we don't know about al franken, when will he actually resign? david: he never specified when he plans on resigning. are we closer to knowing that? >> no we're not. i had one member of the minnesota delegation tell me they were concerned, wait a minute if roy moore is elected, i will leave the senate when roy moore leaves the senate, creating this moral trouble gel in the united states senate. there have been other members who found themselves in sex scandals who said they were going to resign and did not

resign. i looked to 2007, larry craig, the republican senator from idaho caught in a sex sting with police officers in the minneapolis-st. paul bathroom. he said he would step aside and he didn't. you have had it done another way, david wu, democratic congressman from oregon said he would stick around until they finished debt ceiling. david: i think there was a movie once about a party that nobody would leave. i think that is what -- get inside the beltway. so many perks you don't want to leave. finally to ask about the al franken thing it, moved so fast, it was like a snowball effect toward middle of the week. clearly there is an attempt it going on to prepare themselves in case roy moore is elected, they can say with relatively clean conscience, at least al franken isn't here anymore. is that what it was about? >> there were two things that was clear to me, al franken was not out of the wood even prior to wednesday. first of all i got email from sunday night from former female

franken staffers, said they stand behind al franken. i thought to myself, you don't put out statements like that, they have been doing this past couple weeks if you think your former boss is on fine ground and will not have to go away, number two? >> number two, the fact later in the day on wednesday after franken announced he would, they called on him to resign, mazey her rohn know, democratic short from hawaii, she prepared her statement in case there was another shoe to drop with al franken. people were expecting things to happen. david: there were presidential ambitions in the mix. there is so much to talk about, chad. you must be having a great time there in the beltway. >> not getting too much sleep. david: not too much sleep. the milk blood that runs in your veins. >> thank you. david: chad pergram, thanks for joining us. >> thanks for having me. melissa: day of rage turns deadly as violence spreads across the middle east. the u.n. security council is

meeting to discuss the increasingly tense situation. is north korea feeling a change of heart? it may be ready to negotiate as the u.s. and its allies grapple with the nuclear standoff. gordon change is next to break it all down. ♪ well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

david: we have breaking stock news. pepsico will transfer stock listing from the new york stock exchange to the nasdaq. the move is going to be effective on december 19th after the market close.

the stock will continue trading under the ticker symbol, pep or pep. melissa. melissa: nuclear crisis reaching a tipping point as north korea may be ready to come to the negotiating table. russian foreign minister sergey lavrov telling rex tillerson that the rogue regime is open to direct stockstalks with the united states. here is gordon chang, author of, nuclear showdown, north korea takes on the world. gordon, what do you think about this? sergey lavrov coming over. everybody knows him now, rex tillerson counter part in russia, passing this message along. we're willing to give you this special message from russia. what do you make of that? >> it would be great if it is true that north koreans feel they need a to talk to us. but it is pretty unlikely. russians are trying to bowl sister their position. they have been always on the sidelines of this position. now they're moving to center stage, making chinese look bad, saying oh, north koreans want to talk.

what we'll do, yeah, we'll be willing to talk but only in for the cree is willing to come to the stable coming to the table to give up nuclear arms. that is our position all along. melissa: right. >> essentially the north koreans will not be willing to do that. when this whole thing fizzles out the russians will blame us. over the last month or so the russians have been unrelentingly blaming united states for everything that goes wrong. even for some things that don't. >> who listen to them? who believes them? they could blame anybody for anything? who listens? >> yeah, that is a great question because the russians have really undermined their own legitimacy for a very long time. the they're trying to destablize this whole process. they have been putting out disinformation. last week, sputnik, the russian news agency says north korea is willing to come to the table, even not being recognized as a nuclear weapons state. that is stunning, for all alongs for years, pongyang has been saying you have to recognize we have a legitimate right to nukes

before we even sit down to talk to you. melissa: right. >> it is pretty unlikely pongyang has changed its position. melissa: nobody is taking that report seriously either? sounds like we haven't really made any progress? >> i don't think we've made progress at this point of the at some point president choice because his sanctions will be effective cutting off money to the north koreans but we're not at that point. i don't think the north koreans fundamentally changed their position. that is what russians are trying to convince us. all of sudden, out of the blue, without any warning the north koreans are willing to come to talks and they will change all of their long-held positions. this just doesn't make sense, melissa. melissa: yeah. there isn't any indication though that secretary of state rex tillerson would fall for it. >> i don't think so because the u.s. has very, very long-established positions. we're willing to talk to the north koreans but only if they're willing to meet their obligations they have agreed to in the past. we're not willing to throw those out and start all over again. that is the right position. so i don't think tillerson will

fall for this. melissa: no. do you see the chinese making any move away from the north koreans or in support of a situation that wouldn't lead to a nuclear war? >> you know, beijing has done a little bit in response to president trump's pressure but they're starting to get a little bit irritated. we're starting to see this in number of things they have been saying and doing recently. i think china over the last week or so is not going in the right direction. it is really up to our president to push them back on the right road. melissa: wow. gordon chang, always terrific breaking down what is going on, we appreciate it. >> thanks, melissa. >> another hot spot in the world. day of rage in the middle east. violence erupting in the palestinian territories of west bank and gaza strip with at least one person dead after president trump announcing that the u.s. would be moving its embassy from tel aviv to to israel's capital of jerusalem. u.n. holding emergency meeting regarding announcement.

lear from the u.n., is laura engle. not a lot of friend of israel in the u.n., laura. reporter: that's right. it has been pretty intense day here at the u.n. over half of the security council members called for this emergency meeting today, including its four western european members as well as egypts. all of them critical of president trump's announcement this week. now let's get into what happened today. the security council chamber as you mention was pretty lonely place to be an american and israeli today but nikki haley, ambassador to the united nations said the president's announcement was to help advance the cause of peace, insisting that the u.s. is maintaining its position to do just that. to achieve peace in the middle east and address the strong criticism by taking a swipe at the u.n. itself. >> the u.n. has done much more damage to the prospects for middle east peace than to advance them. we will not be a party to that. the united states no longer stands by when israel is unfairly attacked in the united

nations. and the united states will not be lectured to by countries that lack any credibility when it comes to treating both israelis and palestinians fairly. reporter: the palestinian ambassador condemned the move by president trump and demanded he rescind it immediately. ambassador mansour adding that the u.s. undermined its own leadership with this. >> i have often lamented this impunity but not often enough addressed the enabling of these claims that has led to the grave reality we now face. complicity must be recognized. the u.s. decision to reward israelis impunity undermines essentially this qualifies its leadership role to seek peace in the region. reporter: the ambassador adding there could be a draft resolution to try to actually

block what president trump did this week. david: laura, thank you very much. melissa? melissa: breaking news. macy's announcing executive chairman terry lundgren will retire from the board of directors effective january 31st, 2018. the board has appointed jeff janet the ceo since march to additional role of chairman. david: president trump is taking another working weekend, heading down to pensacola, florida, any moment to push his agenda forward. he will leave joint andrews base shortly. we'll take you there live. melissa: plus wildfires in california spreading as hundreds of homes and buildings have already burned to the ground. we have a live update from al california after the break. >> we couldn't be more grateful. our hearts go out to all of those that lost homes. i believe we have lost over 200 homes just in ventura.

melissa: a dire situation that is only getting worse. six wildfires are now blazing across southern california. so far more than 200,000 people have been evacuated from their homes. at least 500 structures have been destroyed. fox news correspondent adam housley on the scene with the latest? reporter: we're in north san diego county. this fire broke out 24 hours ago. it blew through here behind me and unfortunately burned down this home. as you can see fire crews are going through watering down as much as they can. winds are expected to some back here in north san diego county. this is oceanside fire department. you see this all across southern california. winds forecast with with avenge against. if something is tinder dry or still burning and blow it off into the distance and start

another fire. meantime we have a live look for you from the thomas fire. it is two hours north of us in ventura. that is where we were last couple days. that fire continues to burn. massive fire burning, well over 100,000 acres and several hundred homes. more than 400 structures burned down by the fire alone which began monday afternoon. it was stoked by winds as well. up there we saw the same type of scene. down here you see it, firefighters doing what they can to make sure no hot spots, anything, any little tinder piece of wood or whatever it may be can spark a fire up the hillside. there are homes at top of this ridge behind hire. as you can see, what they're doing right now, across this whole area, where you look there are more than 1000 firefighters. the idea, next two days with very low humidity try to keep this down, hope nothing else breaks out because, melissa, as you know, things burn very quick down here. there has been no rain since the heavy rain we had last winter.

a lot of fuel and a lot of places that can burn. melissa. melissa: i grew up all around there. i know how the firebreaks out in blazes and jumps roads. goes unpredictable directions. it is terrifying, adam. thank you. david: trouble in paradise. trouble at cnn they issue ad correction after miss reporting key details alleging conducts between donald trump, jr. and wikileaks of the network's communications team, tweeting out i'm quoting here, cnn's initial reporting of the date on an email sent to members of the trump campaign about wikileaks documents which was confirmed by two sources to cnn was incorrect. we have an updated our story to include the correct date, and present the proper context for the timing of the email. melissa: hmmm. david: now the timing is important because the real date of the email was actually after the wikileaks documents were made public on the internet. it made it seem like they were offering donald trump, jr., some kind of inside exclusive which

was not the case. melissa: interesting. the push for tax reform continues, but cot corporate tax rate prevent congress from getting a bill across the finish line? that's next. david: plus as we have been covering throughout the show, president trump is just about ready to board air force one. there you see marine one. it is coming in for a landing at joint base andrews. they will get on air force one to go to pensacola, florida, and get involved in the roy moore campaign a little more. we'll cover that live as soon as the president takes off. ♪ of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that.

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david: live shot of marine one. we believe the one president is in. they have two or three helicopters going out at sail time. he arriving at joint base

andrews on his way to pensacola. he is heading to florida for a make america great again rally. the audience is going to want to hear of course, about that big beautiful tax cut. gop lawmakers reportedly considering increase in corporate tax rate from the proposed 20% what the president wants up to 22%. my next guest argues two points make a world of difference. michael mchugh, head of president trump's transition team. there is reason why the president wanted to stay at 20%, right. >> absolutely. both the house and senate got to 20%. this week unfortunately we're hearing rumblings might to from 20% to 22%. there are plenty of dials that can be turned to raise revenue. i'm arguing this is probably not the best dial to turn. if we're looking to improve economic growth. david: there is nothing about the corporate rate. the senate plan delays it until

19. if you delay a tax cut, you delay economic recovery or boost the economy gets, right? >> right. we'll see what comes out of conference. but i'm not the most opposed to one-year delay in the corporate tax. david: really? >> really. david: like before we saw a delay in the 1981 reagan tax cut that helped to lead us into a recession that lasted for about 19 months, and we didn't come out of that recession until the tax cuts kicked in. so we've seen what happens with the delay before and it ain't pretty. >> you could also argue if the business is looking at 35% tax rate next year with 100% expensing and enhanced he depreciation you will put all of your investment into next year, 2018 and push off profits until 2019. david: i got to tell you, not only then we saw it happen under george w. bush and the other problem is simplification. the president's himself and

folks touted ram in spring and summer t would be a much more simpler tax code which we all desire to make it easier for everybody. ronald reagan did same thing. let me play a little cut how he sold simplification for the american public in his tax plan. play the bite. >> great. >> the present tax system has 14 rates ranging from 11 to 50%. we would take a giant step towards an ideal system by replacing all that with a simple three-bracket system. david: so simple, so clear. he brought the american people with him to support those tax cuts. you can't do that if you keep the same number of brackets which the senate plan does? >> that's right. again we'll see what comes out of conference, but i do want to point out the increased standard deduction is huge for simplification, by having 24,000 standard deduction, only 5% of taxpayers item idessing. that is huge for simplification.

we is underestimate that. david: by the way there, is the president walking down steps of marine one. marines come to a sharp salute. president get as handshake from one of the generals accompanying him on that trip. there is a lot of military foals go on these trips. sometimes the president says a word or two. it doesn't look as though he will do it. he gives a cursory glance to the press, gives them a little wave. that is about it. michael, do you think as a result of conference between the house and senate we will have shrinkage in number of brackets? >> i will leave that up to the conferees to decide, i have got to but looking at the corporate rate i really hope we keep it at 20%, that we can turn dials elsewhere the tax writers in the house and senate are smart to find areas where they find extra 100, $200 billion of revenue they're looking for this weekend. david: the president give as final wave as he steps into

air force one on way to pensacola for big rally in florida, which is same media market as roy moore campaign. since you're an economist, you're spared from talking about politics for that particular race. michael, have a great weekend. >> you too, david. david: melissa. melissa: we'll be right back. el) el) (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads ... for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week,

to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. and sacramento is just the beginning. with advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. what excites me about this technology is that we're using some of the most cutting-edge machine-learning, and ai, to help solve the most fundamental challenges

that cities face around the world. who knew asphalt could help save the environment? (lani) and the possibilities are endless.

>> melissa: president trump just boarding air force one, the commander-in-chief will soon be on his way to pensacola, florida for the big rally tonight. >> david: fox business is going to be bringing the president's speech to you live and it all begins at 8:00 p.m. eastern, this is a speech you don't want to miss, he will probably talk about roy moore and a lot of other things including taxes. >> melissa: i hope so. before we go we want to wish a very happy birthday to an american hero, a world war ii veteran, ted sapanski turned 102 years old today. >> david: tell me this guy doesn't look a day over 70. he looks great.

and rick sent in his picture, his son, is very proud as well he should be of his father. ted, happy birthday and many many thanks for your service. >> melissa: absolutely. happy friday to you. we'll see you back here on monday. risk & rewards starts now. >> look at what president trump has done. i can go on for a while here. we've had two consecutive quarters of over 3% gdp. we're going to have a third quarter of over 3% gdp. look at what we've done in manufacturing. we've created since president trump got elected 16,000 manufacturing jobs people are bullish on the economy and excited about what's going on here. we're down to 2.6% manufacturing unemployment, 4.1% unemployment here. the nfib came out with their numbers the other day on how excited their business owners are to hire people over 50% of them are hiring people and can't find people in the workforce.